My current employer has just finalized a new Employee Stock Ownership Plan; therefore, we must distribute our ESOP funds from the previous plan. We have some options to handle the distribution such as withdrawal (subject to taxes + penalties), rollover distribution into our Fidelity 401k, or rollover distribution to the financial institution of our choosing.
I originally was going to just rollover the distribution into my 401k, but have also considered using that distribution to starting a Roth IRA, with Fidelity since my 401k is managed with them.
If I were to start a Roth IRA, what taxes will be taken out from this distribution? I'm curious about the math and understanding how this works. For example, if my distribution is $6k, what money would I really have to apply to the Roth IRA? I've read through some of the Wiki and things online, but know this community has some good feedback.
Thanks for any help provided.
Submitted June 05, 2020 at 09:24PM by FR0cus https://ift.tt/2UdJm31
